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Distributor ScanSource retreats; rebuilds around digital

Distributor ScanSource, which bought UK cloud distribution specialist intY in July, saw sales fall slightly last year as it retrenches into digital delivery and concentrates on its home market. Net sales for the fourth quarter of fiscal year 2019 decreased 3% year-over-year to $960.8m. Organic sales, which exclude the impact of foreign currency translation and recent acquisitions, decreased 2% year-over-year, primarily in the Worldwide Barcode, Security and Networking segment. Operating income increased 1% to $20.0 million year-over-year.

For fiscal year 2019, net sales increased 1% to $3.9bn. Organic sales for fiscal year 2019 increased 2% year-over-year, driven by 9% sales growth in the Worldwide Communications and Services segment.

“While we did not finish our fiscal year as strongly as we started, we delivered record net sales of $3.9 billion for fiscal year 2019,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “In North America, we are executing on our strategic initiatives to offer technology solutions, services and recurring revenue as One ScanSource. We [have] announced plans to divest of certain businesses outside of the United States, Canada and Brazil to align our investments with higher-growth, higher-margin businesses.”